Investment Review

Hough & Company will act as your sounding board. We will review your investment ideas with you and your
investment advisor to suggest the best structure to maximize your after-tax return. Don't ignore the impact of
taxes on your investments. While taxes should not drive your investment strategy, understanding how taxes affect
your earnings will help you minimize taxes and maximize your return. Consider these items:

• Capital gains carry a favored tax status. Consider putting more dollars in investments that
return capital gains.• You can take an annual deduction of up to $3,000 of capital losses in excess of capital
gains. Consider balancing your winners and losers to maximize this deduction each year.• Investments which
produce high taxable annual income can be given to family members who are in lower tax brackets, thereby saving
taxes for the overall family group.• Depending on your tax bracket, you may benefit from investing in municipal
bonds. The level of these investments may need to be adjusted as your total income picture changes.